Charles Hoffman, a trailblazer in the field of accounting, has been at the forefront of technological change since the early days of digital transformation. In a recent conversation, Hoffman shared his journey and vision for the future of accounting and auditing, highlighting how the industry is poised for a major shift toward machine-understandable artifacts and semantic knowledge graphs.

Hoffman’s career began in 1982 as an auditor with Price Waterhouse. “Back then, everything was paper based,” he recalled. “But within three months, I was already moving those same working papers and schedules into VisiCalc and then Lotus 1-2-3. I would create them electronically, print them out, and tape them into the audit bundles.” The introduction of the Compaq luggable computer, he noted, made electronic spreadsheets even more compelling.

Fast forward to today. Hoffman points out that while accounting and audit documentation is now 100% digital, it still mirrors its paper origins in fundamental ways. “Most working papers are just digital proxies — Excel spreadsheets, Word documents, PDFs and sometimes HTML. They’re presentation-oriented and not truly understandable by machine-based processes,” he explained.

What are semantic spreadsheets?

A semantic spreadsheet is a revolutionary advancement that combines the familiar structure of a traditional spreadsheet with the power of semantic technology. Unlike conventional spreadsheets, where the data is presented as isolated cells and rows, semantic spreadsheets encode meaning and context directly into the data.

How semantic spreadsheets work

Each cell in a semantic spreadsheet carries metadata that describes the data it contains, such as its type, relationships to other data, and its role within a broader framework. For instance, a cell containing “$1,000” would not only indicate the amount but also specify that it represents “Revenue,” linked to a specific period and financial statement.

Data in semantic spreadsheets is interconnected, forming a graph of relationships rather than isolated rows and columns. This structure mirrors how data is understood in databases and knowledge graphs.

The metadata and relationships are encoded in a machine-readable format, such as XBRL, RDF or JSON-LD. This allows software to understand and process the data intelligently, enabling automation, validation and advanced analytics.

Benefits of semantic spreadsheets

Data from a semantic spreadsheet can seamlessly integrate with other systems, such as databases or ERP systems, without the need for manual reformatting or interpretation. By embedding meaning and rules, semantic spreadsheets can automatically flag inconsistencies or errors in the data, reducing the risk of human error.

Semantic spreadsheets enable advanced querying and analysis. Users can ask complex questions like: “Show me all revenue entries over $10,000 linked to product sales in Q1,” and get immediate answers. Every entry in a semantic spreadsheet is linked to its origin and context, creating a transparent and traceable audit trail.

Imagine an accounting firm using a semantic spreadsheet to prepare a financial report. Instead of manually consolidating data from various sources, the spreadsheet pulls structured data from interconnected systems. Auditors can validate the report by running automated checks that verify compliance with standards like U.S. GAAP or IFRS. The entire process is faster, more accurate and less labor-intensive.

Moving toward machine-readable accounting

Hoffman believes the next major evolution in the field is inevitable: accounting and audit documents will become machine-readable and, more importantly, machine understandable. “These artifacts will no longer just represent static documents. They’ll be dynamic, serving as proxies for databases and knowledge bases,” he said. “Both humans and machines will be able to interrogate these artifacts seamlessly.”

To illustrate, Hoffman pointed to the concept of “semantic spreadsheets” or what he refers to as “knowledge graphs.” These tools aim to integrate accounting, auditing and analytical processes into frameworks that are semantically rich and computationally robust. Hoffman has detailed this approach in works such as Special Purpose Logical Spreadsheets for Accountants and The Case for Semantic-Oriented Accounting and Audit Working Papers.

Overcoming the challenges of transformation

Hoffman acknowledged that the shift requires a significant mindset change. “Trying to understand this evolution using today’s mental framework won’t work,” he said. Quoting Microsoft CEO Satya Nadella, he added, “‘The ‘work’ in ‘workflow’ is undergoing a fundamental change.'”

While Hoffman has already developed prototypes using XBRL to demonstrate the potential of semantic-oriented working papers, he likens their current state to the Wright Flyer. “These prototypes may be rudimentary, but they’re a starting point. Over time, they’ll evolve into something as advanced as the SR-71 Blackbird,” he explained.

Why semantic accounting will succeed

When asked why he’s so confident in this vision, Hoffman provided several reasons:

The double-entry foundation: “Double-entry bookkeeping is a mathematical model that’s been globally standardized since Luca Pacioli documented it in 1494,” Hoffman said. “The semantics are universal, and financial reporting standards like U.S. GAAP and IFRS provide a solid foundation.”

Technology options: While XBRL is a leading contender for the required syntax, Hoffman mentioned alternatives like RDF+OWL+SHACL+SPARQL (the semantic web stack), ISO Graph Query Language (GQL), and modern PROLOG. “Each has advantages, but the goal remains the same,” he noted.

Market-driven demand: “Accountants and auditors will adopt tools that help them do their jobs better, faster and cheaper,” Hoffman emphasized. “The key is creating intuitive, effective software—a challenge that will require collaboration across multiple disciplines.”

Expert collaboration: “This isn’t just a technical problem; it’s a communications problem,” he said. “It will take accountants, IT professionals, computer scientists and knowledge engineers working together to create solutions.”

Building the future, one brick at a time

Hoffman described the development process as deliberate and iterative, much like building a brick wall. “It’s not just about having the right bricks and mortar,” he said. “It’s about craftsmanship—having the right experts who know how to assemble the pieces correctly.”

Quoting legendary hockey star Wayne Gretzky, Hoffman concluded, “You must skate to where the puck is going, not to where it has been. The future of accounting lies in creating tools that anticipate and address tomorrow’s needs. The status quo is doomed.”

For Hoffman, the path forward is clear: The industry is on the cusp of a transformation that will redefine how accountants and auditors interact with data. Semantic accounting is no longer a distant vision, it’s a practical reality waiting to unfold.

President Donald Trump is preparing to take his show on the road after a shock-and-awe flurry of executive actions that have flipped U.S. priorities on everything from climate policy to diversity and inclusion.

Yet while Trump’s long-planned fire and fury start to his second term is entirely something he’s controlled, the next steps for his plans to remake Washington will need the help of others. Republicans, who narrowly control the House and Senate, have yet to find agreement on how to move Trump’s ambitious plans through Congress.

Trump’s third day in office will be capped by an Oval Office interview with Fox News host Sean Hannity, set to air Wednesday night during Asia market hours. Trump is also expected to meet today with a group of centrist House Republicans, according to a Semafor report. 

Trump met Tuesday with House and Senate Republican leaders to chart a path forward on his priorities, but those talks ended without a deal on how to advance Trump’s signature tax plan, as well as on other key policy priorities like immigration and energy. 

Senate Republicans would like to do a large bill on immigration and energy first to deliver a quick win for the president and then tackle tax reform in a second bill, whereas House Republicans would prefer to do one large bill that ties together all of Trump’s priorities to help ensure passage through Congress. 

Congressional Republicans have struggled with unity in recent years, especially in the House. It took 15 votes for Kevin McCarthy to become speaker in 2023, and he lasted just 10 months in the job before being ousted. GOP lawmakers eventually settled on Mike Johnson to take over, and he’s led an uneasy majority since then. Earlier this month, Johnson required Trump’s own last-minute intervention to flip a couple of votes in order to keep the top job.

Hannity, in a Tuesday evening program at the Capitol with House GOP leaders and lawmakers, repeatedly pressed them to get on board with Trump’s full agenda, urging unanimity while reminding repeatedly that no one member can get everything they want. 

Johnson told Hannity Tuesday that a bill to move Trump’s tax agenda, extending cuts from his first term and enacting promises made during his campaign, could be done by April and would be passed by the Memorial Day holiday near the end of May at the latest.

“We’ve had a lot of member briefings, but we’ve also been talking about this with President Trump,” House Majority Leader Steve Scalise told reporters after his meeting with the president on Tuesday.

“When you look at what gives us the best path to success, to secure the border, lower energy costs, save the tax policies, stave off the tax increase — all of those things we want to do, what builds the best path?” Scalise added.”The one area we’re not in disagreement on is what will be in an overall package. We’re all talking about the same things.”

Yet for all the optimistic talk on passing Trump’s legislative agenda, there’s no agreement yet on how to do it. 

Complicating matters further, Republicans in recent years needed to rely on Democratic votes for even the most basic legislative must-dos, like funding the government or lifting the debt ceiling. House Republicans can only afford to lose one vote and still be able to pass bills without needing to go to Democrats for help. In the Senate, they can afford just three defections.

“We’re gonna get the job done, at the end of the day,” Representative Tom Emmer, the Minnesota Republican whose job as majority whip is to corral House GOP votes for the bills that will enact Trump’s agenda, told Hannity. “Failure is not an option.”

Fire funding

Meanwhile, preparations are underway for a trip to North Carolina and Los Angeles, the latter of which will give Trump a chance to spar on Democratic turf with the biggest political foil of his first days back in office, California Governor Gavin Newsom. 

Trump is slated to visit North Carolina Friday to see the aftermath of Hurricane Helene and then California to view the devastation wrought by wildfires in Los Angeles. Trump and Newsom have sparred repeatedly over the handling of fires in California, including over water usage, preparation, and the state’s response. 

In his inaugural address, Trump said fires have burned in Los Angeles “without even a token of defense.” Newsom shot back that Trump’s rhetoric was both “nonsense” and “insulting,” in a statement late Tuesday that interspersed those words with photos of firefighters tackling the blazes.

“I look forward to President Trump’s visit to Los Angeles and his mobilization of the full weight of the federal government to help our fellow Americans recover and rebuild.”

Newsom has also sparred with conservatives in Congress over whether federal aid to California should come without conditions — his insistence — or with conditions including requiring changes to water policy and fire mitigation strategies in the state, as Republicans including Johnson have suggested.

“We’re going to take care of Los Angeles,” Trump said to reporters on Tuesday at the White House. “I’m going to North Carolina, which has been abandoned by the Democrats. And I’m going to North Carolina, very importantly, first, I’ll be there on Friday.”

Trump will also go to Nevada, a swing-state he won in the 2024 presidential election, to “thank them” for their support. 

The trip will cap off a busy week for Trump, who advisers and allies say returned to power with a strong sense of the way he wanted to approach a second term. Trump is trying to demonstrate his effectiveness as a leader and draw a contrast with the former President Joe Biden, who typically did one or two public events each day in office. Many of Trump’s aides would like his legacy to rival that of the late President Ronald Reagan.

The Trump team always intended to move at a dizzying pace during its first two years in office, while Republicans control the White House, Senate and House. They say they are emboldened and confident after winning all seven swing states in the 2024 election and expanding the Republican Party to include greater numbers of young men, Black men and Hispanics. 

To reporters, Trump has said he may impose tariffs on Mexico, Canada and China as soon as February 1. “We’re talking about a tariff of 10% on China, based on the fact that they’re sending fentanyl to Mexico and Canada,” Trump told reporters Tuesday afternoon. 

Trump’s comments, made in White House events that turned into impromptu press conferences, scrambled currency markets. China’s onshore yuan dropped by the most in three weeks on his tariff threat reiteration. A day earlier, Trump’s 25% threat had sent the Canadian dollar to its weakest levels in nearly five years.

Even if Trump’s second-term is off to an impactful start, warning signs loom for his presidency. The nation’s stubborn inflation will be hard to tame, despite his recent order to federal agencies to study the issue of bringing down costs for consumers. 

Peace in the Middle East may prove fragile, despite the agreed-upon six week cease fire between Israel and Hamas in Gaza, while Russia continues to bombard Ukraine’s cities nightly, with little sign yet of public movement by Russia’s leadership toward the truce talks Trump says are essential.

Trump indicated he plans to speak soon with Russian President Vladimir Putin, and suggested Tuesday he could impose more sanctions on Russia if Putin doesn’t come to the table for talks on Ukraine. 

Putin told China’s leader Xi Jinping, during their 95-minute video call Tuesday, that he was ready for dialogue with the U.S. on Ukraine, Interfax reported, but that Trump’s representatives hadn’t yet contacted the Kremlin over possible talks.